Question

All of the following questions are relevant to Orion's decision to add a cafeteria plan EXCEPT which one?

1) What benefits are available to employees at Orion's main competitors?
2) What costs would Orion incur for switching to a cafeteria benefits plan?
3) How would a cafeteria plan alter Orion employees' Social Security benefits?
4) What effect would a cafeteria plan have on the coverage that Orion employees receive?

Answer 1

The question irrelevant to Orion's decision about a cafeteria plan is the one related to Social Security benefits. Questions about competitor benefits, costs, and coverage effects are relevant. Employee choice motivations in dining can reflect benefit preferences.

Step-by-step explanation:

The question that is irrelevant to Orion's decision to add a cafeteria plan is: “How would a cafeteria plan alter Orion employees' Social Security benefits?” A cafeteria plan, which often includes pre-tax benefits such as health insurance and flexible spending accounts, typically does not directly alter an employee's Social Security benefits. Questions regarding competitor benefits, cost implications, and effects on coverage are all relevant considerations when assessing the potential impact of implementing such a plan.

Understanding the motives behind employee choices, such as why they might eat at certain campus facilities and how incentives influence those choices, can be analogous to understanding why employees might prefer certain benefits over others. This can help Orion gauge which benefits to offer in a cafeteria plan to be competitive.